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The Points Guy believes that credit cards can transform lives, helping you leverage everyday spending for cash back or travel experiences that might otherwise be out of reach. That's why we publish a variety of editorial content and card comparisons: to help you find a great card to turn your goals into reality.
Our site may earn compensation when a customer clicks on a link, when an application is approved, or when an account is opened with our partners, and this may impact how or where these products appear. While we don't cover all available credit cards, our editorial team creates and maintains all of the analysis of these cards, and our content is not influenced nor subject to review by any credit card company, bank or partner prior to (or after) publication. Please view our advertising policy and product review methodology for more information.
Olivia Mittak is a credit cards editor at TPG. She specializes in maximizing earn for points and miles, finding the best welcome bonuses and choosing the right credit cards for your wallet.
July 10, 2024 • 9 min read
The cards we feature here are from partners who compensate us when you are approved through our site, and this may impact how or where these products appear. We don't cover all available credit cards, but our analysis, reviews, and opinions are entirely from our editorial team. Terms apply to the offers listed on this page. Please view our advertising policy and product review methodology for more information.
Editorial note: This story has been updated with new information after the refresh of the Amex Gold in late July 2024.
Editorial disclaimer: Opinions expressed here are the author's alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.
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By commenting, you agree to our Community Guidelines to help create a positive space for conversation. The responses below are not provided or commissioned by the bank advertiser, our partners, or The Points Guy (“TPG”). They have not been reviewed, approved, or otherwise endorsed by any of these parties. All responses are submitted by individual contributors, and neither the bank advertiser, our partners, nor TPG are responsible for ensuring that all posts and/or questions are answered.
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Quick summary
The article explores the absence of a direct mid-tier lifestyle card competitor to a popular dining and grocery-focused product, suggesting a new entrant could address consumer frustrations.
It highlights that current options face criticism for complicated benefits and limited-use credits, especially regarding dining and brand restrictions.
A proposed competitor could offer simpler, more flexible statement credits for dining and gas, along with broader earning categories covering groceries, dining and gas purchases.
The analysis suggests that such a card would fit well between existing travel-focused products, potentially offering a more affordable pairing for consumers.
What to consider
Many users express dissatisfaction with restrictive credits and complex benefit structures in current products.
A hypothetical new card could provide up to $200 in annual statement credits for dining and gas, with fewer brand restrictions and simpler redemption.
TPG's valuations peg points earned in these programs at 2.05 cents each as of July 2024.
What you'll miss from the article
A detailed comparison of how a new lifestyle card could reshape the competitive landscape and offer more consumer-friendly features than current options.
Generated by AI with support from our editorial team.
Update: Some offers mentioned below are no longer available. View the current offers here.
Chase and American Express are two of the most popular card issuers. Since they offer similar products, their cards are often compared.
The American Express® Green Card competes with the Chase Sapphire Preferred® Card, while The Platinum Card® from American Express has a notable rivalry with the Chase Sapphire Reserve®.
But what about the American Express® Gold Card? American Express's mid-tier lifestyle card has no direct competitor from Chase, which I see as a missed opportunity. So, here's what Chase should do to create a formidable opponent to the Amex Gold.
The information for the American Express Green Card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
What's a lifestyle credit card?
This term isn't official, but I chose to use it because, from my perspective, it best represents what cards like the Amex Gold are about.
Dining and buying groceries are two meaningful parts of people's daily lives. The restaurants a person visits and what they purchase at the grocery store are a big part of their lifestyle. So, cards offering bonus points on these purchases and statement credits at dining establishments and supermarkets target consumers who spend big in these areas.
With that established, we can dig a little deeper into why Chase needs an Amex Gold competitor.
Why should Chase launch a competitor to the Amex Gold?
The choice to create a mid-tier lifestyle card goes beyond creating two competing trios of cards. The Amex Gold has received criticism for its high $325 annual fee (see rates and fees) and "coupon book" credits. Consumers want reasonable annual fees for what a card offers, and they don't want benefits that are a hassle to use.
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Since the Amex Gold was refreshed in late July 2024, many cardmembers have taken to Reddit to bemoan the card's increasingly complicated benefits and rising annual fee, which has reached borderline premium-tier territory.
In my opinion, there has never been a better time for Chase to address those complaints by offering a card that is the opposite of the Amex Gold: reasonably priced and easier to use. Competition in the credit card market is good; it encourages innovation and discourages consumer-unfriendly practices.
If Chase can offer a great answer to the Amex Gold, it might encourage American Express to take a more competitive approach to future refreshes of the Amex Gold.
Chase lifestyle card annual fee and benefits
What could a Chase mid-tier lifestyle card look like? Since Chase's competitors to the Amex Green and Amex Platinum offer lower annual fees, it should continue that trend with this hypothetical card. The Amex Gold has an annual fee of $325, so a Chase competitor should target an annual fee between $150 and $195.
In terms of benefits, Chase would need to approach this very strategically. According to Reddit, one of the most common criticisms of the Amex Gold is the way it issues its monthly dining statement credits. Enrollment is required; terms apply.
Its general dining statement credit is limited to a handful of brands, including Grubhub, Wine.com and The Cheesecake Factory. Reddit users report frustration with this, along with the credit being limited to up to $10 per month (up to $120 per calendar year).
Many Amex Gold cardmembers on Reddit are also dissatisfied with the card's up to $7 per month Dunkin' Donuts statement credit (up to $84 per calendar year). For cardmembers who live in a state without Dunkin' Donuts (like myself), this credit is a challenge to use. Enrollment required.
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Considering those criticisms, Chase should include up to $100 in statement credits per calendar year for dining purchases. This credit should include dining at restaurants and takeout and delivery services. Keep it simple; don't include any brand restrictions or limitations on how much can be credited each month. As with the Sapphire Preferred and Sapphire Reserve, a complimentary DashPass subscription should be included, too.
Online forum users have long lamented Chase's lack of a consumer credit card for gas purchases. If Chase offered a statement credit for gas on this card, it would set it apart from virtually any other available consumer gas card. This card could offer up to $100 in statement credits per calendar year for purchases at gas stations. As with the dining credit, there should be no brand restrictions or other gimmicks.
Based on the $150 to $195 annual fee I envisioned for this card, offering up to $200 in statement credits each year would allow cardholders to get a lot of value out of this card.
And, as a final benefit, the card could offer a complimentary Lyft Pink membership for six months, which includes priority pickups and free cancellations.
When I think about purchases that define the average American's daily life, three categories immediately come to mind: gas, groceries and dining. Given that the Amex Gold offers bonus Membership Rewards points for groceries and dining, covering those three categories would put a Chase lifestyle card in a competitive spot.
At the very least, Chase should match the Amex Gold's earnings on groceries at U.S. supermarkets and dining at restaurants (4 points per dollar on up to $25,000 per calendar year for U.S. supermarkets and up to $50,000 per calendar year for dining at restaurants worldwide; then 1 point per dollar spent thereafter).
That means this lifestyle card needs to earn cardholders at least 4 Ultimate Rewards points per dollar spent on dining at restaurants and groceries at U.S. supermarkets. If it went this route, this card could earn 4 points per dollar spent on gas to keep the categories consistent. Unlike the Amex Gold, this card shouldn't have any spending caps.
Given that TPG values Chase points at 2.05 cents per point (as of July 2024), that would be an effective return of over 8% on groceries, dining and gas.
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Another option could be to give cardholders the choice to earn 6 points per dollar spent on either gas, groceries or dining each quarter. Cards like the Chase Freedom Flex® offer rotating quarterly categories (activation required), but cardholders don't have a say in which category they'll earn bonus points each quarter. Giving cardholders the flexibility to choose what they earn bonus points on would make this product an enticing option.
Cardholders could maximize their earnings across gas, groceries and dining without switching between cards. For the two categories that aren't selected for the elevated rate of 6 points per dollar each quarter, the card would earn 4 points per dollar. So, for example, if you chose to earn 6 points per dollar spent on gas for this quarter, you'd earn 4 points per dollar spent on dining and groceries.
This hypothetical card would fit right between the Sapphire Preferred and Sapphire Reserve. The Sapphire Preferred earns points on online groceries, while both the Sapphire Preferred and Sapphire Reserve earn points on dining. By introducing this theoretical lifestyle card, the Sapphire Preferred and Sapphire Reserve could drop their grocery and dining categories and focus more on travel.
It would make sense, then, for cardholders to hold both this card and either the Sapphire Preferred or Sapphire Reserve. To help highlight this pairing, this card should be granted a "Sapphire" moniker as well.
That said, it shouldn't be subject to the same application restrictions as the Sapphire Preferred and Sapphire Reserve. Cardholders would need to be able to hold this card and one of the other Sapphire cards together, and earning a bonus on one shouldn't lock someone out from earning a bonus on the other.
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Comparing the pairing of this card and the Sapphire Reserve against the Amex Gold and Amex Platinum shows a huge difference in overall cost for the consumer. Depending on how Chase priced this card, we'd be looking at a total cost of $700-$745 each year for this card and the Sapphire Reserve against $1,020 annually for the Amex Gold and Amex Platinum (see Amex Platinum rates and fees).
The time is right for Chase to release a competitor to the Amex Gold. A strategically designed mid-tier lifestyle card would generate a lot of buzz and applications for Chase. Chase has a golden opportunity here that it needs to take advantage of, and if it released a card like I've envisioned, I'd definitely apply for it.
For the rates and fees of the Amex Gold, click here. For the rates and fees of the Amex Platinum, click here.
Comments
By commenting, you agree to our Community Guidelines to help create a positive space for conversation. The responses below are not provided or commissioned by the bank advertiser, our partners, or The Points Guy (“TPG”). They have not been reviewed, approved, or otherwise endorsed by any of these parties. All responses are submitted by individual contributors, and neither the bank advertiser, our partners, nor TPG are responsible for ensuring that all posts and/or questions are answered.
